TIDMIRGP
RNS Number : 1955O
Indian Restaurants Group PLC
25 June 2010
?
INDIAN RESTAURANTS GROUP PLC
(AIM: IRGP)
Unaudited interim accounts for the 6 months ended 31 March 2010
Chairman's Statement
Indian Restaurants Group plc (AIM: IRGP) is pleased to announce its interim
results for the six months ended 31 March 2010.
IRGP generated revenues of GBP1.27 million in the six-month period ended 31
March 2010, an advance on the GBP1.14 million reported in the previous
corresponding period for last year. These results have been achieved in a
background of difficult economic conditions and downward pressure on
discretionary consumer spends. The shutdown in airspace and also the
exceptionally cold weather in the early part of the year unfortunately did not
help as we saw a dip in sales during this period. A motivated management team
and staff together with a good product have helped us counteract some of the
adverse effects of the economic backdrop. We are pleased to report that the loss
before tax has been substantially reduced to GBP135,000 from GBP338,000 in the
previous comparative six-month period. We have been able to do this by focussing
our efforts on gross margin and also careful control of costs and this will be
an ongoing feature of our business. The loss per share is 1.0 pence, which again
is a significant reduction from the 3.5 pence reported in the previous period.
Whilst we have a long way to go we do think that we have performed well given
the circumstances.
Mela Redhill which operates out of Redhill continues to receive very positive
feedback from customers and has now built a sizeable takeaway/delivery business.
In the short time it has been operating, it has been able to secure a good local
repeat customer base. However despite all the efforts, it has so far not been
able to generate sufficient volume to justify the Mela menu and the
infrastructure that goes with it. We will continue our efforts to improve the
financial performance of this unit. Mela Redhill is trying to forge links with
local businesses in the area and we have seen some success in this regard.
In our industry, we have in recent times seen increasing promotional activities
with very aggressive discounting which invariably reduces our already tight
margin. In order to maintain our market share we have had to fall in line with
industry practice and offer these aggressive discounts. Going forward, we are
planning to reduce our discounting activities and instead concentrate more on
our food and service to our customers. We have also entered into an
affinity-marketing programme with the UK's leading retailer Tesco. This
arrangement enables Tesco's customers to utilise their Clubcard points in our
restaurants. The summer period is traditionally a quiet period for us and more
so this year with the football World Cup. As a means of minimising the impact we
have secured contracts with inbound tour companies to provide group catering to
tourists from various countries which helps us fill capacity during quieter
periods.
Subsequent to the period end, in April we announced that we completed a placing
raising new monies totalling approximately GBP139,475. This money strengthens
the balance sheet and is being used for working capital purposes.
Outlook
Whilst we have seen some improvement in the economy, consumer confidence remains
fragile and therefore there is still a degree of uncertainty when we will see a
pick up in discretionary spend. We continue to believe that we have an
excellent food offering, combined with a dedicated and motivated team, which
will stand us in good stead in the long term.
Haresh Kanabar
Chairman
25 June 2010
+-----------------------------------+-----------------------------------+
| Contacts: | |
+-----------------------------------+-----------------------------------+
| | |
+-----------------------------------+-----------------------------------+
| Indian Restaurants Group plc | www.indianrestaurantsgroup.com |
+-----------------------------------+-----------------------------------+
| Haresh Kanabar, Chairman | +44 (0) 207 432 3278 |
+-----------------------------------+-----------------------------------+
| Amit Pau, Chief Executive | +44 (0) 207 432 3278 |
+-----------------------------------+-----------------------------------+
| | |
+-----------------------------------+-----------------------------------+
| WH Ireland Limited | www.wh-ireland.co.uk |
+-----------------------------------+-----------------------------------+
| Mike Coe / Marc Davies | +44 (0) 117 945 3470 |
+-----------------------------------+-----------------------------------+
Unaudited Consolidated Income Statement for the six months ended 31 March 2010
+----------------------------------+------+------------+------------+-----------+
| |Note | Unaudited | | Audited |
| | | 6 months | Unaudited | Year |
| | | ended | 6 months | ended |
| | | 31 March | ended | 30 |
| | | 2010 | 31 March | September |
| | | GBP'000 | 2009 | 2009 |
| | | | GBP'000 | GBP'000 |
| | | | (Restated) | |
+----------------------------------+------+------------+------------+-----------+
| | | | | |
+----------------------------------+------+------------+------------+-----------+
| Revenue | | 1,265 | 1,136 | 2,470 |
+----------------------------------+------+------------+------------+-----------+
| Cost of sales | | (249) | (259) | (657) |
+----------------------------------+------+------------+------------+-----------+
| | | | | |
+----------------------------------+------+------------+------------+-----------+
| Gross profit | | 1,016 | 877 | 1,813 |
+----------------------------------+------+------------+------------+-----------+
| | | | | |
+----------------------------------+------+------------+------------+-----------+
| Administrative expenses | | (1,151) | (1,229) | (2,508) |
+----------------------------------+------+------------+------------+-----------+
| | | | | |
+----------------------------------+------+------------+------------+-----------+
| Operating loss | | (135) | (352) | (695) |
+----------------------------------+------+------------+------------+-----------+
| | | | | |
+----------------------------------+------+------------+------------+-----------+
| Finance income | | 6 | 20 | 26 |
+----------------------------------+------+------------+------------+-----------+
| Finance costs | | (6) | (6) | (10) |
+----------------------------------+------+------------+------------+-----------+
| | | | | |
+----------------------------------+------+------------+------------+-----------+
| Loss on ordinary activities | | (135) | (338) | (679) |
| before taxation | | | | |
+----------------------------------+------+------------+------------+-----------+
| | | - | - | 26 |
| Tax expense | | | | |
+----------------------------------+------+------------+------------+-----------+
| | | | | |
+----------------------------------+------+------------+------------+-----------+
| Loss for the period from | | (135) | (338) | (653) |
| continuing activities | | | | |
| | | | | |
+----------------------------------+------+------------+------------+-----------+
| | | | | |
+----------------------------------+------+------------+------------+-----------+
| Discontinued operations | | | | |
+----------------------------------+------+------------+------------+-----------+
| Loss for the period from | | - | (127) | (405) |
| discontinued operations | | | | |
+----------------------------------+------+------------+------------+-----------+
| | | | | |
+----------------------------------+------+------------+------------+-----------+
| Loss for the period | | (135) | (465) | (1,058) |
+----------------------------------+------+------------+------------+-----------+
| | | | | |
+----------------------------------+------+------------+------------+-----------+
| Basic and diluted loss per share | | | | |
+----------------------------------+------+------------+------------+-----------+
| | | | | |
+----------------------------------+------+------------+------------+-----------+
| From continuing operations | 3 | (1.0)p | (2.6)p | (5.0)p |
+----------------------------------+------+------------+------------+-----------+
| From discontinuing operations | | - | (0.9)p | (3.1)p |
+----------------------------------+------+------------+------------+-----------+
| | | | | |
| | | | | |
+----------------------------------+------+------------+------------+-----------+
| | | (1.0)p | (3.5)p | (8.1)p |
+----------------------------------+------+------------+------------+-----------+
| | | | | |
+----------------------------------+------+------------+------------+-----------+
Unaudited Consolidated Balance Sheet at 31 March 2010
+------------------------------------+--+-----------+-----------+-----------+
| | | Unaudited | | |
| | | 31 March | Unaudited | Audited |
| | | 2010 | 31 March | 30 |
| | | GBP'000 | 2009 | September |
| | | | GBP'000 | 2009 |
| | | | | GBP'000 |
+------------------------------------+--+-----------+-----------+-----------+
| Assets | | | | |
+------------------------------------+--+-----------+-----------+-----------+
| Non-current assets | | | | |
+------------------------------------+--+-----------+-----------+-----------+
| Goodwill | | 1,473 | 2,137 | 1,473 |
+------------------------------------+--+-----------+-----------+-----------+
| Property, plant & equipment | | 336 | 545 | 357 |
+------------------------------------+--+-----------+-----------+-----------+
| | | | | |
+------------------------------------+--+-----------+-----------+-----------+
| | | 1,809 | 2,682 | 1,830 |
+------------------------------------+--+-----------+-----------+-----------+
| Current assets | | 18 | 39 | 20 |
| Inventories | | | | |
+------------------------------------+--+-----------+-----------+-----------+
| Trade and other receivables | | 166 | 267 | 218 |
+------------------------------------+--+-----------+-----------+-----------+
| Cash and cash equivalents | | 403 | 1,048 | 650 |
+------------------------------------+--+-----------+-----------+-----------+
| | | | | |
+------------------------------------+--+-----------+-----------+-----------+
| Total current assets | | 587 | 1,354 | 888 |
+------------------------------------+--+-----------+-----------+-----------+
| | | | | |
+------------------------------------+--+-----------+-----------+-----------+
| Total assets | | 2,396 | 4,036 | 2,718 |
+------------------------------------+--+-----------+-----------+-----------+
| | | | | |
+------------------------------------+--+-----------+-----------+-----------+
| Liabilities | | | | |
+------------------------------------+--+-----------+-----------+-----------+
| Current liabilities | | | | |
| | | | | |
+------------------------------------+--+-----------+-----------+-----------+
| Trade and other payables | | (464) | (1,058) | (553) |
| Financial liabilities- borrowings | | (183) | (306) | (216) |
+------------------------------------+--+-----------+-----------+-----------+
| | | | | |
+------------------------------------+--+-----------+-----------+-----------+
| | | (647) | (1,364) | (769) |
+------------------------------------+--+-----------+-----------+-----------+
| | | | | |
+------------------------------------+--+-----------+-----------+-----------+
| Total assets less current | | 1,749 | 2,672 | 1,949 |
| liabilities | | | | |
+------------------------------------+--+-----------+-----------+-----------+
| | | | | |
+------------------------------------+--+-----------+-----------+-----------+
| | | | | |
+------------------------------------+--+-----------+-----------+-----------+
| Non-current liabilities | | | | |
+------------------------------------+--+-----------+-----------+-----------+
| Financial liabilities- borrowings | | (150) | (351) | (190) |
+------------------------------------+--+-----------+-----------+-----------+
| Provision for other liabilities | | - | - | (25) |
| and charges | | | | |
+------------------------------------+--+-----------+-----------+-----------+
| | | | | |
+------------------------------------+--+-----------+-----------+-----------+
| Net assets | | 1,599 | 2,321 | 1,734 |
+------------------------------------+--+-----------+-----------+-----------+
| | | | | |
+------------------------------------+--+-----------+-----------+-----------+
| Equity | | | | |
+------------------------------------+--+-----------+-----------+-----------+
| Share capital | | 65 | 1,308 | 1,308 |
| Deferred Share capital | | 1,243 | - | - |
| | | | | |
+------------------------------------+--+-----------+-----------+-----------+
| Share premium account | | 3,451 | 3,451 | 3,451 |
+------------------------------------+--+-----------+-----------+-----------+
| Share Based payments reserves | | 139 | 133 | 139 |
+------------------------------------+--+-----------+-----------+-----------+
| Retained losses | | (3,299) | (2,571) | (3,164) |
+------------------------------------+--+-----------+-----------+-----------+
| | | | | |
+------------------------------------+--+-----------+-----------+-----------+
| Equity attributable to equity | | 1,599 | 2,321 | 1,734 |
| holders of the parent | | | | |
+------------------------------------+--+-----------+-----------+-----------+
| | | | | |
+------------------------------------+--+-----------+-----------+-----------+
Unaudited Consolidated Statement of Changes in Equity
+--------------------------+---------+----------+---------+----------+----------+---------+
| | | | | | | |
| | Share | Deferred | | Share | | |
| | capital | share | Share | Based | Retained | Total |
| | - | capital | premium | Payments | earnings | |
| | equity | | | Reserves | | |
+--------------------------+---------+----------+---------+----------+----------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+--------------------------+---------+----------+---------+----------+----------+---------+
| Year ended 30 September | | | | | | |
| 2009 | | | | | | |
+--------------------------+---------+----------+---------+----------+----------+---------+
| At 1 October 2008 | 1,308 | - | 3,451 | 133 | (2,106) | 2,786 |
+--------------------------+---------+----------+---------+----------+----------+---------+
| Share based payments | - | - | - | 6 | - | 6 |
+--------------------------+---------+----------+---------+----------+----------+---------+
| Total comprehensive loss | - | - | - | - | (1,058) | (1,058) |
| for the period | | | | | | |
+--------------------------+---------+----------+---------+----------+----------+---------+
| | | | | | | |
+--------------------------+---------+----------+---------+----------+----------+---------+
| At 30 September 2009 | 1,308 | - | 3,451 | 139 | (3,164) | 1,734 |
+--------------------------+---------+----------+---------+----------+----------+---------+
| | | | | | | |
+--------------------------+---------+----------+---------+----------+----------+---------+
| Six months ended 31 | | | | | | |
| March 2009 | | | | | | |
+--------------------------+---------+----------+---------+----------+----------+---------+
| At 30 September 2008 | 1,308 | - | 3,451 | 133 | (2,106) | 2,786 |
+--------------------------+---------+----------+---------+----------+----------+---------+
| Total comprehensive loss | - | - | - | - | (465) | (465) |
| for the period | | | | | | |
+--------------------------+---------+----------+---------+----------+----------+---------+
| | | | | | | |
+--------------------------+---------+----------+---------+----------+----------+---------+
| At 31 March 2009 | 1,308 | - | 3,451 | 133 | (2,571) | 2,321 |
+--------------------------+---------+----------+---------+----------+----------+---------+
| | | | | | | |
+--------------------------+---------+----------+---------+----------+----------+---------+
| Six months ended 31 | | | | | | |
| March 2010 | | | | | | |
+--------------------------+---------+----------+---------+----------+----------+---------+
| At 30 September 2009 | 1,308 | - | 3,451 | 139 | (3,164) | 1,734 |
+--------------------------+---------+----------+---------+----------+----------+---------+
| Share re-organisation | (1,243) | 1,243 | - | - | - | - |
+--------------------------+---------+----------+---------+----------+----------+---------+
| Total comprehensive loss | - | - | - | - | (135) | (135) |
| for the period | | | | | | |
+--------------------------+---------+----------+---------+----------+----------+---------+
| | | | | | | |
+--------------------------+---------+----------+---------+----------+----------+---------+
| At 31 March 2010 | 65 | 1,243 | 3,451 | 139 | (3,299) | 1,599 |
+--------------------------+---------+----------+---------+----------+----------+---------+
| | | | | | | |
+--------------------------+---------+----------+---------+----------+----------+---------+
| | | | | | | |
+--------------------------+---------+----------+---------+----------+----------+---------+
Unaudited Consolidated Cash Flow Statement for the six months ended 31 March
2010
+-------------------------------------+---+-----------+------------+-----------+
| | | Unaudited | | Audited |
| | | 6 months | Unaudited | Year |
| | | ended | 6 months | ended |
| | | 31 March | ended | 30 |
| | | 2010 | 31 March | September |
| | | GBP'000 | 2009 | 2009 |
| | | | GBP'000 | GBP'000 |
| | | | (Restated) | |
+-------------------------------------+---+-----------+------------+-----------+
| | | | | |
+-------------------------------------+---+-----------+------------+-----------+
| Cash outflow from operating | | (162) | (23) | (413) |
| activities | | | | |
+-------------------------------------+---+-----------+------------+-----------+
| | | | | |
+-------------------------------------+---+-----------+------------+-----------+
| Corporation tax paid | | - | (9) | - |
+-------------------------------------+---+-----------+------------+-----------+
| | | | | |
+-------------------------------------+---+-----------+------------+-----------+
| Net cash flow from operating | | (162) | (32) | (413) |
| activities | | | | |
+-------------------------------------+---+-----------+------------+-----------+
| | | | | |
+-------------------------------------+---+-----------+------------+-----------+
| Cash flows from investing | | | | |
| activities | | | | |
+-------------------------------------+---+-----------+------------+-----------+
| Purchase of property, plant and | | (3) | (118) | (127) |
| equipment | | | | |
+-------------------------------------+---+-----------+------------+-----------+
| Disposal/acquisition of | | - | - | 45 |
| subsidiaries, including overdraft | | | | |
+-------------------------------------+---+-----------+------------+-----------+
| Interest received | | 6 | 20 | 26 |
+-------------------------------------+---+-----------+------------+-----------+
| | | | | |
+-------------------------------------+---+-----------+------------+-----------+
| Net cash used in investing | | 3 | (98) | (56) |
| activities - continuing operations | | | | |
+-------------------------------------+---+-----------+------------+-----------+
| Net cash used in investing | | - | (14) | - |
| activities - discontinued | | | | |
| operations | | | | |
+-------------------------------------+---+-----------+------------+-----------+
| | | | | |
+-------------------------------------+---+-----------+------------+-----------+
| Net cash used in investing | | 3 | (112) | (56) |
| activities | | | | |
+-------------------------------------+---+-----------+------------+-----------+
| | | | | |
+-------------------------------------+---+-----------+------------+-----------+
| Cash flows from financing | | | | |
| activities | | | | |
+-------------------------------------+---+-----------+------------+-----------+
| Share issue costs | | - | - | - |
+-------------------------------------+---+-----------+------------+-----------+
| Repayment of bank loans and finance | | (63) | (59) | (103) |
| leases | | | | |
+-------------------------------------+---+-----------+------------+-----------+
| Income tax paid | | - | - | - |
+-------------------------------------+---+-----------+------------+-----------+
| Interest paid | | (6) | (6) | (10) |
+-------------------------------------+---+-----------+------------+-----------+
| | | | | |
+-------------------------------------+---+-----------+------------+-----------+
| Net cash used in financing | | (69) | (65) | (113) |
| activities - continuing operations | | | | |
+-------------------------------------+---+-----------+------------+-----------+
| Net cash used in financing | | - | (34) | (31) |
| activities - discontinued | | | | |
| activities | | | | |
+-------------------------------------+---+-----------+------------+-----------+
| | | | | |
+-------------------------------------+---+-----------+------------+-----------+
| Net cash used in financing | | (69) | (99) | (144) |
| activities | | | | |
+-------------------------------------+---+-----------+------------+-----------+
| | | | | |
+-------------------------------------+---+-----------+------------+-----------+
| Decrease in cash and cash | | (228) | (243) | (613) |
| equivalents | | | | |
+-------------------------------------+---+-----------+------------+-----------+
| Cash and cash equivalents at start | | 548 | 1,161 | 1,161 |
| of the period | | | | |
+-------------------------------------+---+-----------+------------+-----------+
| | | | | |
+-------------------------------------+---+-----------+------------+-----------+
| Cash and cash equivalents at end of | | 320 | 918 | 548 |
| the period | | | | |
+-------------------------------------+---+-----------+------------+-----------+
| | | | | |
+-------------------------------------+---+-----------+------------+-----------+
Notes to the unaudited consolidated interim statement for the six months ended
31 March 2010
1. Basis of preparation
Indian Restaurant Group Plc is a public limited company incorporated and
domiciled in United Kingdom. The principal activity of the company is to operate
a chain of Indian restaurants. The company's ordinary shares are traded on the
AIM market of the London Stock Exchange plc ("AIM").
These interim accounts have been prepared using the accounting policies to be
applied in the annual report and accounts for the year ended 30 September 2010.
These are consistent with those included in the previously published annual
report and accounts for the year ended 30 September 2009, which have been
prepared in accordance with IFRS as adopted by the European Union.
The preparation of the interim statement requires management to make judgements,
estimates and assumptions that affect the application of policies and reported
amounts of assets and liabilities, income and expenses. Actual results may
differ from these estimates.
The interim financial statements are unaudited and do not constitute statutory
accounts as defined in section 434(3) of the Companies Act 2006.
The figures for the year ended 30 September 2009 have been extracted from the
audited annual report and accounts that have been delivered to the Registar of
Companies. Adler Shine LLP, Indian Restauraunt Group's auditors, reported on
those accounts under section 495 of the Companies Act 2006. Their report was
unqualified and did not contain a statement under section 498 of that Act.
2. Significant accounting policies
The following accounting policies have been applied consistently in dealing with
items which are considered material in relation to the group's financial
statements.
Basis of consolidation
The consolidated financial information for the period to 31 March 2010 includes
the results of Indian Restaurants Group Plc and its subsidiary undertakings for
that period. Subsidiary undertakings are entities over which the group has the
power to control the financial and operating policies so as to obtain benefits
from the activities. The group obtains and exercises control through voting
rights.
The group adopts the purchase method in accounting for the acquisition of
subsidiaries. On acquisition the cost is measured at the fair value of the
assets given, plus equity instruments issued and liabilities incurred or assumed
at the date of exchange plus any costs directly attributable to the acquisition.
The assets acquired and liabilities and contingent liabilities assumed in a
business combination are measured at their fair value at the date of
acquisition. Any excess of the fair value of the consideration over the fair
value of the identifiable net assets acquired is recorded as goodwill. Any
deficiency of the fair value of the consideration below the fair value of
identifiable net assets acquired is credited to the income statement in the
period of the acquisition.
The results of subsidiary undertakings acquired or disposed of during the year
are included in the consolidated income statement from the effective date of
acquisition or up to the effective date of disposal.
Where necessary, adjustments are made to the financial statements of
subsidiaries to bring the accounting policies used into line with those used by
the group. Inter-company transactions and balances between group companies are
eliminated.
Critical accounting estimates and judgments
Estimates and judgments are continually evaluated and are based on historical
experience and other factors, including expectations of future events that are
believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions
The group makes estimates and assumptions concerning the future. Whilst the
directors believe that the estimates and assumptions used in the preparation of
the interim financial statements are reasonable, the resulting accounting
estimates will, by definition, seldom equal the related actual results. The
estimates that have a significant risk of causing a material adjustment to the
carrying values of assets and liabilities within the next financial year are
discussed below.
1) Impairment of goodwill
The group tests whether goodwill has suffered any impairment annually or when
there is an indication of impairment. The recoverable amounts of cash-generating
units have been determined based on value-in-use calculations which require the
use of estimates.
Goodwill
Goodwill represents the excess of the cost of an acquisition over the fair value
of the company's share of the net identifiable assets of the acquired subsidiary
at the date of acquisition. Goodwill is included in intangible assets and is
tested annually for impairment or when there is an indication of impairment. Any
impairment is recognised immediately in the income statement and is not
subsequently reversed.
On disposal of a subsidiary, the amount of goodwill attributable is included in
the determination of the profit and loss on disposal.
Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation.
The charge for depreciation is calculated to write down the cost of tangible
fixed assets to their estimated residual values by equal annual instalments over
their expected useful lives which are as follows:
Fixtures and fittings 15% reducing balance
Plant &
machinery 15% reducing balance
Motor Vehicles
25% reducing balance
Leasehold building
over the term of the lease
Impairment provisions are made where the carrying value of tangible fixed assets
exceeds the recoverable amount.
Revenue recognition
Revenue is recognised on the sale of food and beverages, service charges and
gratuities, exclusive of value added tax.
Taxation
Current tax, including UK corporation tax and foreign tax, is provided on the
group's taxable profits, at amounts expected to be paid using the tax rates and
laws that have been enacted or substantially enacted by the balance sheet date.
Deferred taxation is provided in full using the liability method on temporary
differences between the tax bases of assets and liabilities and their carrying
amounts in the consolidated financial statements. Deferred tax is determined
using tax rates that have been enacted at or substantially enacted by the
balance sheet date and are expected to apply when the related deferred tax asset
is realised or the deferred tax liability is settled.
Deferred tax assets are recognised to the extent that it is probable that future
taxable profit will be available against which the temporary differences can be
utilised.
Leased assets
Expenditure on operating leases is charged to the income statement on a basis
representative of the benefit derived from the asset, normally on a straight
line basis over the lease period.
Where fixed assets are financed by financing arrangements which give rights
approximating to ownership they are treated as if they had been purchased
outright at their fair value and the corresponding commitments are shown in the
balance sheet as obligations under finance leases and hire purchase contracts.
Depreciation of fixed assets acquired under finance leases and hire purchase
contracts is calculated to write off the attributed cost over the shorter of the
lease or contract term and their estimated useful lives by equal annual
instalments. The excess of the total rentals over the amount capitalised is
treated as interest which is charged to the profit and loss account in
proportion to the amounts outstanding under the lease and hire purchase
contracts.
Share based payments
The cost of equity-settled transaction with suppliers of goods and services is
measured by reference to the fair value of the good or service received, unless
that fair value cannot be estimated reliably. The fair value of the good or
service received is recognised as an expense as the Group receives the goods or
service. The cost of equity-settled transactions with employees, and
transactions with suppliers where fair value cannot be estimated reliably, is
measured by reference to the fair value of their equity instrument. The fair
value of the equity instrument is determined at the date of grant, taking into
account market based vesting conditions. The fair value is determined using the
Black Scholes Model.
No expense is recognised for awards that do not ultimately vest, except for
awards where the vesting conditions are conditional upon market conditions,
which are treated as vesting irrespective of whether or not the market condition
is satisfied, provided that all other performance conditions are satisfied.
At each balance sheet date before vesting, the cumulative expense is calculated,
representing the extent to which the vesting period has expired and management's
best estimate of the achievement or otherwise of non-market conditions, the
number of equity instruments that will ultimately vest, or in the case of an
instrument subject to a market condition, be treated as vesting as described
above. The movement in cumulative expense since the previous balance sheet date
is recognised in the income statement, with a corresponding entry in equity.
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with
banks, other short term highly liquid funds with original maturities of three
months or less and bank overdrafts. Bank overdrafts are shown within borrowing
in current liabilities on the balance sheet.
Financial instruments
Financial assets and liabilities are recognised in the balance sheet when the
Group becomes party to the contractual provisions of the instrument.
Trade and other receivables
Trade receivables are measured at cost less any provision necessary when there
is objective evidence that the group will not be able to collect all amounts
due.
Trade and other payables
Trade and other payables are not interest bearing and are measured at original
invoice amount.
3. Loss per ordinary share
+---------------------------------+----+---+-----------+-----------+-----------+
| | | Unaudited | | Audited |
| | | 6 months | Unaudited | Year |
| | | ended | 6 months | ended |
| | | 31 March | ended | 30 |
| | | 2010 | 31 March | September |
| | | GBP'000 | 2009 | 2009 |
| | | | GBP'000 | GBP'000 |
+---------------------------------+--------+-----------+-----------+-----------+
| Basic | | | | | |
+---------------------------------+----+---+-----------+-----------+-----------+
| Loss from continuing activities | | | (134) | (338) | (653) |
| | | | | | |
+---------------------------------+----+---+-----------+-----------+-----------+
| Loss from discontinuing | | | - | (127) | (405) |
| activities | | | | | |
+---------------------------------+----+---+-----------+-----------+-----------+
| | | | (134) | (464) | (1,058) |
+---------------------------------+----+---+-----------+-----------+-----------+
| | | | | | |
+---------------------------------+----+---+-----------+-----------+-----------+
| Weighted average number of | | | 13,080 | 13,080 | 13,080 |
| shares | | | | | |
+---------------------------------+----+---+-----------+-----------+-----------+
| | | | | | |
+---------------------------------+----+---+-----------+-----------+-----------+
| Basic loss per share (pence) | | | | | |
+---------------------------------+----+---+-----------+-----------+-----------+
| From continuing operations | | | (1.0)p | (2.6)p | (5.0)p |
+---------------------------------+----+---+-----------+-----------+-----------+
| From discontinuing operations | | | - | (0.9)p | (3.1)p |
+---------------------------------+----+---+-----------+-----------+-----------+
| | | | (1.0)p | (3.5)p | (8.1)p |
+---------------------------------+----+---+-----------+-----------+-----------+
| | | | | | |
+---------------------------------+----+---+-----------+-----------+-----------+
| There was no dilutive effect from the share options outstanding during |
| the period. |
+---------------------------------+----+---+-----------+-----------+-----------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BDGDLLSDBGGS |
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